Tilray, IIPR, Trulieve, Other Cannabis Stocks Rally On Report Of Government Considering Adding CBD Treatment For Medicare Patients

• Bloomberg reported that the Centers for Medicare & Medicaid Services (CMS), which runs the Medicare program, is planning an initiative that would make some U.S. Medicare patients eligible for CBD coverage. 
• MSOS and YOLO, two key cannabis sector-focused funds, gained 3.4% and 2.7%, respectively.
• The Trump administration seems to be backing cannabis as an industry, following its previous comments regarding CBD and reclassifying marijuana.

Cannabis stocks advanced on Wednesday following a report speculating that certain U.S Medicare patients could soon be eligible to receive coverage for CBD under a new initiative.

CBD, or cannabidiol, is a compound found in cannabis and used to treat sleep disorders, anxiety, pain, and inflammation. Some research suggests it may also treat cancer symptoms. The drug is sold as gummies, pet treats, and skincare supplements.

Cannabis Stocks Rally

Tilray Brands’ shares rose 4.8%, while the over-the-counter stocks of Curaleaf Holdings, Trulieve Cannabis, and Green Thumb Industries gained between 2% to 5.6%. Shares of Innovative Industrial Properties, a real estate investment trust (REIT) that buys and leases specialized cannabis cultivation facilities, rose 1.1%.

On Stocktwits, the retail sentiment for TLRY shifted to ‘extremely bullish’ from ‘bullish,’ while that for CURLF shifted to ‘bullish’ from ‘neutral.’ The sentiment was ‘bullish’ for GTBIF, and ‘bearish’ for TCNNF and IIPR as of the last reading. 

The AdvisorShares Pure US Cannabis ETF (MSOS), which tracks U.S. cannabis companies exclusively, and the AdvisorShares Pure Cannabis ETF (YOLO), which also tracks overseas companies and cannabis-adjacent businesses, rose 3.4% and 2.7%, respectively.

CMS Initaitive

The rally came after Bloomberg reported that the Centers for Medicare & Medicaid Services (CMS) is planning an initiative that would make some U.S. Medicare patients eligible for CBD coverage. 

Details of the proposed program aren’t available, but an early version of the plan focused on seniors in oncology and palliative care settings, according to a summary viewed by the news agency.

Unnamed sources told Bloomberg that Howard Kessler, a payments financier who has advocated for expanded CBD access, met with Health and Human Services Secretary Robert F. Kennedy Jr. about the issue last month

A Trump Boost?

The development comes close on the heels of President Donald Trump highlighting the potential benefits of cannabidiol in senior healthcare. Hemp-derived cannabidiol (CBD) could "revolutionize senior healthcare" by slowing disease progression and serving as an alternative to prescription drugs, Trump had said in a video post in September.

The previous month, Trump said his administration was weighing a move to reclassify marijuana as a less dangerous drug under federal law.

That said, doubts over cannabis efficacy in healthcare remain. A recent study funded by the Food and Drug Administration suggested that prolonged use of CBD may cause liver toxicity, while other research suggests it can interfere with other medications, harm male reproductive health, and pose potential risks to children and pregnant women.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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